Tinna Rubber And Infrastructure Limited – Investor Presentation Summary

Key Operational Highlights

  • Tyre crushing volumes grew 30% YoY to 86,000 TPA in H1 FY27.
  • Production volumes of Micronized Rubber Powder (MRP) and Reclaimed Rubber (RR) grew 19% YoY in H1 FY27.
  • Polymer Composite & Masterbatch (PCMB) business operating at 82% capacity utilization.
  • Expanded capability to process all types of End-of-Life tyres, enhancing feedstock flexibility.
  • Renewable energy contributed 40% of total power consumption in H1 FY27.

Key drivers of operational performance: Strong demand from tyre industry, capacity expansion, and enhanced recycling capabilities.

Segment-wise Performance

  • Infrastructure Segment: Recorded 38% YoY growth despite economic volatility and bitumen supply constraints.
  • Industrial Segment: Includes exports, which grew 15% YoY in volume with revenue contribution stable at ~6%.
  • Consumer Segment: Performance details not specified in presentation.
  • Steel Segment: Performance details not specified in presentation.
  • Polymer Composite & Masterbatch: Revenue grew threefold from ₹8 Cr in H1 FY26 to ₹27 Cr in H1 FY27, contributing ~9% to H1FY27 turnover.

Explanation of significant changes in segment performance: Growth driven by strong demand for recycled rubber products and expansion into plastics value chain.

Financial Highlights

Consolidated Q2FY27 Performance:

  • Revenue: ₹157 Cr (31% YoY growth)
  • EBITDA: ₹29 Cr (37% YoY growth)
  • PAT: ₹17 Cr (45% YoY growth)
  • EPS: ₹9.45 (36% YoY growth)
  • EBITDA Margin: 18.8%
  • PAT Margin: 10.9%

Consolidated H1FY27 Performance:

  • Revenue: ₹313 Cr (25% YoY growth)
  • EBITDA: ₹63 Cr (50% YoY growth)
  • PAT: ₹38 Cr (60% YoY growth)
  • EPS: ₹20.86 (51% YoY growth)
  • EBITDA Margin: 20.3%
  • PAT Margin: 12.0%

YoY/QoQ comparison: Q2 revenue flat QoQ (₹156 Cr in Q1), but EBITDA declined 13% QoQ from ₹34 Cr in Q1FY27.

Drivers of financial performance: Higher volumes, operational efficiencies, and diversification into new business verticals.

Comparison to market estimates: Not specified in presentation.

Key Risks: Geopolitical uncertainties in West Asia, supply chain disruptions, start-up costs of new subsidiaries.

Geographical Revenue Split

  • Domestic vs Export: Export contribution approximately 6% of revenue (classified under Industrial segment)
  • GCC Region: Contributed approximately 80% of total revenue for Global Recycle LLC (Oman)
  • Regional breakdown for other regions not specified.

Balance Sheet Snapshot

  • Net Debt: ₹111 Cr (declined 9% from ₹121 Cr in FY26)
  • Net Debt-to-Equity: 0.32x in H1FY27 (improved from FY26)
  • Interest Coverage Ratio: 9.91x in H1FY27 (improved from 7.49x in FY26)
  • Total Equity: ₹333 Cr (H1FY27)

Financial Health Insights: Strong cash flow generation, improved liquidity, and reduced leverage.

Capex & Cash Flow Health

  • Capital Expenditure: ₹45 Cr spent in H1FY27 against planned ₹100 Cr investment over FY27-FY28
  • Free Cash Flow: Not specified
  • Operating Cash Flow: Not specified
  • Net Debt Movement: Reduced by 9% to ₹111 Cr in H1FY27

Investment Rationale: Focus on capacity expansion, technology upgrades, and integrated recycling complexes.

Strategic & R&D Initiatives

  • 3,500 MTPA MRP capacity expansion on track for commissioning by Q3 FY27, increasing total MRP capacity to 20,000 MTPA
  • Tyre Pyrolysis Oil (TPO) facility at Varale commenced commercial sales in Q2FY27
  • Recovered Carbon Black (rCB) production scheduled to commence in Q3FY27
  • Acquired 40-acre land for integrated rubber and plastic recycling complex with planned investment of ₹250 Cr over three years
  • Established Tinna Rubber Chile SpA in Santiago, Chile
  • ₹5 Cr allocated to R&D for FY27 for new-generation recycled rubber materials and engineered plastics

Expected impact on growth: PCMB business targeting 8-10% revenue contribution in FY27; new capacities to drive volume growth.

Strategic Rationale: Expanding into high-growth markets, diversifying product portfolio, and enhancing global ELT sourcing network.

Industry Trends & Business Environment

Macro/Industry Trends: Growing demand for recycled rubber across multiple industries; rising natural rubber prices driving manufacturers toward recycling; government initiatives promoting modified bitumen for roads; increasing adoption of recycled rubber in sports turfs.

Impact on Company: Strong demand environment supporting volume growth; regulatory tailwinds for infrastructure products; sustainability trends favoring circular economy business model.

Management Commentary & Growth Outlook

Strategic Outlook: "Achieved record H1 profitability on both standalone and consolidated bases" with performance expected to normalize in coming quarters.

FY Guidance: Targeting Kolkata plant turnaround by Q3FY27 end; Construction Systems revenue target of ₹5 Cr for FY27; PCMB business targeting 8-10% revenue contribution in FY27.

Market Share Targets: Position as largest producer of MRP in India to be solidified with capacity expansion.

Risks and Opportunities: Geopolitical uncertainties in West Asia affecting project timelines; supply chain disruptions; start-up costs of new subsidiaries.

International Projects Update

  • Global Recycle LLC (Oman): Operated at 90% capacity utilization in H1FY27; revenue ~₹20 Cr; PAT of ₹1.3 Cr in H1FY27; EBITDA margins improved to 11.5% from 6.43% in FY26
  • Mbodla Investment Pty Ltd. (South Africa): Phase 1 capex completed; breakeven expected by end of FY27; initial crumb rubber production line of 9,000 MTPA planned
  • Tinna Rubber Arabia Ltd. (Saudi Arabia): Plans for 24,000 MTPA tyre recycling plant; 13,000 sqm plot allocated; construction expected in H2FY27 subject to geopolitical normalization
  • Combined loss of ₹0.94 Cr in H1FY27 for South Africa and Saudi Arabia subsidiaries due to initial start-up costs

Subsidiary Performance

  • TP Buildtech (49.42% owned): Revenue ₹41 Cr and EBITDA ₹4.7 Cr in H1FY27; contributed ₹1 Cr at consolidated level
  • Manufacturing units in Wada and Bawal; Kolkata plant commenced in July 2025
  • New product lines being added in construction chemicals space

ESG Updates

  • 99.5% material recovery from end-of-life tyre recycling
  • 64% renewable electricity usage across operations, targeting 75% by FY28
  • Zero industrial waste-water discharge
  • ISO 45001 certified for occupational health and safety
  • Community development initiatives in education, tree plantation and healthcare